A lawsuit was filed on behalf of investors in Vertex Energy, Inc. (NASDAQ:VTNR) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 03/15/2023 -- An investor, who purchased NASDAQ: VTNR shares, filed a lawsuit against Vertex Energy, Inc. over alleged violations of Federal Securities Laws.
Investors who purchased shares of Vertex Energy, Inc. (NASDAQ: VTNR) have certain options and for certain investors are short and strict deadlines running. Deadline: May 2, 2023. NASDAQ: VTNR investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Houston, TX based Vertex Energy, Inc., an energy transition company that focuses on the production and distribution of conventional and alternative fuels.
In early 2021, Vertex Energy, Inc. announced that it had reached an agreement to acquire an oil refinery located in Mobile, Alabama and a key component of the acquisition was Vertex Energy's plan to convert a portion of the refinery's 91,000 barrel-per-day output to renewable diesel fuel, which was expected to generate higher profits than the refinery's conventional gasoline and diesel fuel outputs.
On August 9, 2022, Vertex Energy disclosed a net loss of $63.8 million during the second quarter of 2022. Vertex Energy also revealed that adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA") for the Mobile refinery, even after adjusting for certain incurred losses, was only $63.6 million, compared to the guidance given just three months prior for EBITDA of $120-$130 million in the second quarter, a total shortfall of 50%. Vertex Energy also withdrew its financial guidance for the remainder of fiscal year 2022 and fiscal year 2023. On this news, the price of Vertex Energy common stock fell by approximately 44%, damaging investors.
Shares of Vertex Energy, Inc. (NASDAQ: VTNR) declined from $18.10 per share on June 7, 2022, to as low as $6.80 per share on August 15, 2022.
The plaintiff claims that between April 1, 2022 and August 8, 2022, that, unbeknownst to investors, immediately prior to the closing of the Mobile acquisition, defendants had entered into, or were a party to, a series of transactions that dramatically capped the new plant's profitability and would, in fact, lead to significant losses immediately following the acquisition, and that these transactions, which in some instances were required pursuant to the financing arrangements Vertex Energy had entered into, resulted in over $125 million in losses between April 1, 2022 and August 8, 2022.
Those who purchased shares of Vertex Energy, Inc. (NASDAQ: VTNR) have certain options and should contact the Shareholders Foundation.
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